Hongli Zhihui Group Co., Ltd. (300219) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hongli Zhihui Group Co., Ltd.

Why is Hongli Zhihui Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.55%

The company has been able to generate a Return on Capital Employed (avg) of 4.55% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 7.09% and Operating profit at -149.78% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

PRE-TAX PROFIT(Q) At CNY 1.76 MM has Fallen at -93.59%
ROCE(HY) Lowest at 2.44%
NET SALES(Q) At CNY 903.35 MM has Fallen at -13.88%

With ROE of 1.50%, it has a expensive valuation with a 2.00 Price to Book Value

Over the past year, while the stock has generated a return of -1.44%, its profits have fallen by -77.7%
At the current price, the company has a high dividend yield of 0.2

Below par performance in long term as well as near term

Along with generating -1.44% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hongli Zhihui Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hongli Zhihui Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hongli Zhihui Group Co., Ltd.

-100.0%

0.74

38.97%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.09%

EBIT Growth (5y)

-149.78%

EBIT to Interest (avg)

6.25

Debt to EBITDA (avg)

1.88

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

0.99

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

13.05%

Pledged Shares

Institutional Holding

ROCE (avg)

4.55%

ROE (avg)

7.21%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

133

Industry P/E

Price to Book Value

2.00

EV to EBIT

-250.29

EV to EBITDA

27.55

EV to Capital Employed

1.82

EV to Sales

1.32

PEG Ratio

Dividend Yield

0.18%

ROCE (Latest)

-0.73%

ROE (Latest)

1.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 1,784.5 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.89%

-23What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 1.76 MM has Fallen at -93.59%

ROCE(HY)

Lowest at 2.44%

NET SALES(Q)

At CNY 903.35 MM has Fallen at -13.88%

OPERATING PROFIT MARGIN(Q)

Lowest at -1.83 %

RAW MATERIAL COST(Y)

Grown by 26.6% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -16.56 MM

NET PROFIT(Q)

Lowest at CNY 6.18 MM

Here's what is working for Hongli Zhihui Group Co., Ltd.

Cash and Eqv

Highest at CNY 1,784.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.89%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Hongli Zhihui Group Co., Ltd.

Pre-Tax Profit

At CNY 1.76 MM has Fallen at -93.59%

over average net sales of the previous four periods of CNY 27.39 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.18 MM has Fallen at -75.43%

over average net sales of the previous four periods of CNY 25.13 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 903.35 MM has Fallen at -13.88%

over average net sales of the previous four periods of CNY 1,048.98 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -1.83 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY -16.56 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Net Profit

Lowest at CNY 6.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 26.6% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at CNY 13.55 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income